More and more people are joining the above campaign to get the Government to take note and change their thinking on how to revive the property market.
Everyone agrees first time buyers are needed for the housing market to revive and yet all the Governments attempts to get the banks lending have failed. Despite the banks stating they are trying, everyone involved in the property industry knows that the current mortgage deals offered are unrealistic. Either the interest rates are to high, the admin fees punitive or reference criteria is ridiculously hard.
Rather than the Government pouring in even more money into the banks in an attempt to get the FTB mortgage market going, they could circumvent them completely by re introducing local council mortgages.
There would be several advantages to this approach
1) Lending on sensible criteria if the mortgages were granted on sensible multiples of income, realistic levels of deposits and referencing criteria. Well placed first time buyers would be able to get on the property ladder without over inflating house prices. It would also mean mortgage decisions would be made away from commercial market pressures.
2) Long term fixed rate mortgages would help avoid the difficulties caused by the fluctuations in interest rates. These can result in problems with mortgage repayments and repossessions.
3) It could be introduced straight away no additional legislation would be needed as councils already have powers to do it. During the 1960’s local council mortgages were common place, for that to happen again the Government would need to relax the rules on how the council raised the money to lend by amending existing laws.
4) Reduce council housing benefit costs a more stable mortgage market would mean more first time buyers could provide housing for themselves. Less people would fall into difficulties and be made homeless or forced to rent
5) No added burden on council tax payers as the mortgage support would be serviced by the loan.
6) Banks would fall into line with mortgages being provided from another source outside their control the banks would soon change their attitude towards sensible lending.
Join the campaign by joining the group on Facebook or on LinkedIn together we can make the Government act
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